China North East Petroleum said that its oilfield services subsidiary Song Yuan Tiancheng Drilling Engineering has signed a contract with Beijing Junlun Runzhong Technology to drill 100 new wells in JLRZ's oilfield in Inner Mongolia.
This is the company’s first drilling contract with JLRZ and the sixth drilling contract signed since the acquisition of Tiancheng in the second half of 2009.
Drilling of the 100 wells is expected to commence this month and be completed by September 2011.
Tiancheng will allocate two rigs to Inner Mongolia and each well is expected to drill 50 wells during the one-year contract term.
The company said that the value of this contract with JLRZ will be contingent upon the drilling depth of each of the 100 wells drilled.
China North East Petroleum is an independent oil company that engages in the production of crude oil in Northern China.